ProMOS plans auction of assets to boost its finances

FINANCIALLY STRICKEN:After a year of financial woe in which it failed to repay debts and was hit by falling prices, the company will sell off assets as it restructures

By Lisa Wang / Staff reporter

Debt-ridden memorychip maker ProMOS Technologies Inc (茂德科技) is scheduled to auction off an advanced 12-inch factory, equipment and office building in Taichung for a floor price of NT$19.5 billion (US$669.5 million) today, paving the way for the company to start a restructuring plan.

Vanguard International Semiconductor Corp (世界先進), which makes driver integrated circuits for LCD panels, could be another potential buyer of ProMOS’ assets.

The company said on Friday that it was evaluating the possibility of buying a factory to meet growing customer demand. Vanguard is 39 percent owned by TSMC.

ProMOS aims to transfer the assets to the winning bidder by the end of next month and hopes the buyer can restore the factory’s operations by the Lunar New Year holidays, which falls in February, Lu Daung-yen (呂東英), one of the firm’s trustees said in a filing to the Taiwan Stock Exchange on Nov. 5 after the first creditors’ meeting on ProMOS’ restructuring.

Last month, ProMOS’ major credit banks, Taiwan Cooperative Bank (合庫金庫銀行) and Bank of Taiwan (台灣銀行), received the go-ahead from the Hsinchu District Court to liquidate the financially troubled chipmaker. The company was also forced to delist its shares from the local stock market.